Tax-free shopping in Japan: the new 2026 refund system explained

Japan just changed its tax-free shopping system. Until October 31, 2026, tourists could buy at designated stores without paying consumption tax (消費税, 10%) at the till — show your passport, the tax came off immediately. From November 1, 2026 that no longer works that way. The new system works like VAT refunds in Europe: you pay the full price (tax included) and get the money back when you leave the country, at the airport.

If you are visiting Japan now or in the near future, this affects you directly.

How the new system works

The change has a straightforward logic: the Japanese government identified abuses — people buying tax-free and then reselling the goods inside Japan rather than taking them out of the country. The new system solves that: no discount until it is confirmed that the goods have left Japan.

The step-by-step:

At the store: present your passport at the till, as before. The store registers the purchase in the customs system. You pay the full price with the 10% tax included. You get a receipt — keep it, it is essential.

At the airport on departure: before the security checkpoint there are unmanned kiosks where you scan your passport. The system automatically loads the registered purchases. You normally do not need to speak to an agent.

The refund: it does not arrive before you board. The refund is issued by the store (or the refund company it uses) after receiving the customs confirmation. The usual methods are credit card refund (1–2 weeks) or bank transfer (2–4 weeks).

Key point: you do not receive the money at the airport. You need to budget for paying the full tax-inclusive price, with the 10% coming back later.

Who qualifies

The eligibility requirements have not changed from the previous system:

• Foreign visitors on a short-stay entry (tourism, short business trips), as long as they have not been in Japan for more than six months since their last entry.
• Japanese nationals resident abroad, with documentation proving overseas residence.
• Cruise passengers with a shore landing permit.

Foreign residents with long-stay visas — if you have been in Japan for more than six months — are not entitled to tax-free shopping.

The ¥5,000 minimum (and what has improved)

The minimum purchase of ¥5,000 pre-tax, at the same store, on the same day remains unchanged. What has improved is that you can now combine all product types to reach that minimum.

Previously there was a distinction between “general goods” (clothing, electronics, bags) and “consumables” (cosmetics, food, medicine), and you had to reach the minimum separately in each category. That distinction has been abolished. You can combine a face cream, a charger, and a bag to reach ¥5,000 without any issue.

The end of sealed bags

Anyone who has bought cosmetics at Don Quijote knows the ritual: everything went into a sealed plastic bag with a warning not to open it until leaving the country. That is gone.

Under the new system, consumable goods no longer need sealed packaging. You can use the perfume, the cream, or the clothes you bought on the same day. The only requirement is that the goods physically leave the country with you when you depart.

What has not changed: airport duty-free

The duty-free shops inside the international departures area (after passport control) are a different system and are not affected by this change. There, the discount still happens at the till and covers alcohol and tobacco taxes as well. If you are buying whisky or perfume at the airport before boarding, everything works exactly as before.

Stores where it works

Look for the orange-and-white “Japan Tax-Free Shop” logo. Larger chains are better prepared for the new system:

• Department stores: Isetan, Mitsukoshi, Takashimaya, Daimaru. The tax-free counter is usually on a single floor.
• Electronics: Bic Camera, Yodobashi Camera, Yamada Denki.
• Drugstores and souvenirs: Don Quijote, Matsumoto Kiyoshi, Welcia.
• Luxury: boutiques in Ginza Six, Omotesando Hills, major brand stores.

How not to lose your refund

These are the mistakes that cost you the refund:

Do not put tax-free items in checked baggage before going through the customs kiosks. Customs may need to physically see the goods. Go through the kiosk first, then drop your bags.

Keep all receipts. No receipt, no refund. Carry an envelope or small folder for tax-free receipts.

You have 90 days from the date of purchase to leave Japan. If you buy something on day one of a long stay and do not leave within 90 days, you lose the refund.

You cannot ship it home. Since April 2025, tax-free goods sent by international post no longer retain the exemption. The items must leave Japan with you on the plane.

Items over ¥1,000,000: for high-value purchases, stores must register specific details of the item so customs can identify it. Not an issue for most purchases, but if you are buying a luxury watch or an expensive camera in Ginza, ask the store how they handle this.

Practical tip

Allow more time at the airport than usual — especially now that the system is new. The kiosks are automated and fast, but the system has only been running for a few weeks and there may be queues while people adjust to the process.